Archives: Glossary

Description.

Administration Costs

What is the definition of Administration Costs? Administration costs, also recognized as fixed costs are the costs which acquire on an industry or hotel exclusively from management. These overhead costs are not straightly impacted by manufacturing, production or sale volume and can therefore be explained as fixed costs. They can be seen as the vital costs that occur without a sale having to …

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ADR (Rate) Index

Average Rate Index is a measure of how the hotel’s average rate compares to that of there competitors. The comparison works against a designated set of competitors (comp set), selected based on their likeness to your own business i.e. hotels with the similar brand, target audience and size. By choosing competitors that has a similar …

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Adult Only Resort

What is the definition of Adult Only Resort? Resort beleaguered towards couples and groups who wish to have a passionate or calming holiday. The hotels are only accessible for visitors above the age of 18. The hotels cater towards older spectators which permits them to stipulate their overhaul accordingly, such as more limited dining options …

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Agency Model

What is the meaning of OTA Agency Model in the hotel industry? In hotel industry (Revenue) when talking about an Agency Model, we are referring to the commercial model of an OTA (online travel agency). The main characteristic of the Agency Model OTA is that the guest pays the hotel directly when the accommodation occurs …

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AGOP – Adjusted Gross Operating Profit

What is the definition of Adjusted Gross Operating Profit (AGOP) in the hotel industry? AGOP abbreviates for: Adjusted Gross Operating Profit AGOP is the form that is found by subtracting “hotel base organization fees” from the “gross operating profit”. How is AGOP calculated? Formula: AGOP = GOP – Hotel Base Management Fees

All Inclusive Hotel

What is the definition of All Inclusive Hotel in the hotel industry? All inclusive hotels include more than solely the price of a room into the worth per night, but also three meals per day (Breakfast, Lunch and Dinner), amenities and actions. Although every hotel is unlike and may or may not include other service …

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All Inclusive Resort

What is the definition of All Inclusive Resort? An all-inclusive resort is a holiday resort, which, as the name previously states, has the lot integrated in the price. A Holiday resort that includes at a minimum housing, three meals every day, soft drinks, strong drinks, and probably other amenities in the price. Many also present …

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Allocation

What is the definition of Allocation in the hospitality industry? In the hotel business, allocation describes the procedure of selecting an amount of rooms and available for sale. A hotel administrator may select to allocate only a restricted quantity rooms towards sales in order to have them available for sale when expect high revenues at …

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Allotment

What is the definition of Allotment in the hospitality industry? The word Allotment is used in the Hotel industry to assign a certain block of pre-negotiated rooms which have been bought out and seized by a third party (such as a travel organizer, wholesaler, tour operator, hotel consolidator, travel mediator, OTA). Allotments can be constricted …

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Alternative Accomodation

Alternative accommodation can be simply defined as consisting of all those types of accommodation which are available outside the formal or organised accommodation sector. We may consider this as an alternative any form of accommodation that is different from that which is generally accepted as tourist accommodation. At any tourist destination, the concept of alternative …

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